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NetClass Technology Inc Class A (NTCL) AI Stock Analysis

NTCL

NetClass Technology Inc Class A

(NASDAQ:NTCL)

Select Model
Rating:37Underperform
Price Target:$2.00▲(400.00% Upside)
Action:reiterated
Date:09/07/26

NetClass Technology (NTCL) receives the lowest possible score due to severe fundamental deterioration and a catastrophic technical downtrend. The most significant factors driving this score are the company's massive profitability deficits, severe cash burn, and a stock price that has collapsed across all moving averages. Lacking any supportive valuation metrics or technical reversal signs, the stock presents extreme risk.

Positive Factors
Revenue growthRevenue growth indicates continued demand for NetClass’s education-technology offerings and provides a foundation for future operating improvement. If the company can convert this expanding top line into healthier gross margins, greater scale could support more durable earnings potential.
Negative Factors
Severe profitability deteriorationThe sharp collapse in gross profit despite higher revenue shows that growth is currently producing little economic benefit. High operating expenses and the expanding accumulated deficit indicate weak operating leverage, making a durable return to profitability dependent on major cost and margin improvement.

NetClass Technology Inc Class A (NTCL) vs. SPDR S&P 500 ETF (SPY)

-100%-50%0%50%100%150%200%NTCL-99.26%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$171.27K
Dividend Yield
―
Average Volume (3M)
346.56K
Price to Earnings (P/E)
-0.0
Beta (1Y)
-1.11
Revenue Growth
25.23%
EPS Growth
-144.16%
Country
US
Employees
46
Sector
General
Sector Strength
55
Industry
Software - Application

NetClass Technology Inc Class A Business Overview & Revenue Model

Company Description

NetClass Technology Inc, operating through its subsidiaries, provides an online platform for professional education and accompanying courseware. Its services span the People's Republic of China, Hong Kong, Singapore, and the Cayman Islands. The compa...

How the Company Makes Money

NetClass Technology generates revenue by providing education-technology solutions and related services to customers. Its revenue model primarily consists of (1) fees from delivering technology-enabled education services and solutions (e.g., providing...

NetClass Technology Inc Class A Financial Statement Overview

Summary

NetClass Technology is experiencing severe financial distress with shrinking revenue, profound cash burn, and a net profit margin of -110%. An ROE of -187% and heavily negative free cash flow indicate massive operational inefficiencies and immediate liquidity risks.

Income Statement

12Very Negative

Balance Sheet

35Negative

Cash Flow

10Very Negative
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue12.51M9.81M10.10M11.09M9.26M11.56M
Gross Profit1.94M2.24M2.31M2.36M3.04M3.98M
EBITDA-8.57M-9.11M-1.28M521.49K166.93K1.34M
Net Income-11.89M-10.82M-1.48M162.23K132.69K1.07M
Balance Sheet
Total Assets15.93M13.81M7.23M6.54M4.35M4.22M
Cash, Cash Equivalents and Short-Term Investments1.70M1.76M410.72K524.60K208.21K1.04M
Total Debt3.07M2.71M13.12K54.36K130.94K98.55K
Total Liabilities11.21M7.83M4.17M2.10M1.94M1.69M
Stockholders Equity4.60M5.78M2.97M4.44M2.41M2.53M
Cash Flow
Free Cash Flow-10.55M-8.03M-135.66K391.88K-571.45K742.32K
Operating Cash Flow-8.25M-5.72M-135.66K391.88K-571.45K745.80K
Investing Cash Flow-2.54M-2.29M00019.57K
Financing Cash Flow12.07M9.36M10.87K-152.91K-125.58K-30.23K

NetClass Technology Inc Class A Technical Analysis

Technical Analysis SentimentNegative
Last Price0.40

Price Trends

50DMA1.66Negative
100DMA4.73Negative
200DMA14.85Negative

Market Momentum

MACD-0.40Negative
RSI17.07Positive
STOCH19.80Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTCL, the sentiment is Negative. The current price of 0.40 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.66, and below the 200-day MA of 14.85, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 17.07 is Positive, neither overbought nor oversold. The STOCH value of 19.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTCL.

NetClass Technology Inc Class A Risk Analysis

NetClass Technology Inc Class A disclosed 54 risk factors in its most recent earnings report. NetClass Technology Inc Class A reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk
1.The market price of our Class A Ordinary Shares has recently declined significantly, and our Class A Ordinary Shares could be delisted from the Nasdaq or trading could be suspended.Q3, 2025

NetClass Technology Inc Class A Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

NTCL against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
IDAIIDAI45Neutral$16.03M-1.16-141.04%―2.13%95.54%
CSAICSAI42Neutral$1.88M-0.15-138.21%―117.68%-0.39%
RYDERYDE41Neutral$96.74M-2.07-63.13%―34.88%12.77%
NTCLNTCL37Underperform$853.52K-0.01-228.97%―25.23%-144.16%

* General Sector Average

Performance Comparison

-100%0%100%200%NTCLIDAISPPLRYDECSAIWETODec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
NTCL and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
NTCLNetClass Technology Inc Class A0.40-58.60-99.32%
IDAIT Stamp, Inc. Class A2.82-1.37-32.70%
SPPLSimpple Ltd.2.32-3.86-62.46%
RYDERyde Group Limited Class A0.570.1123.38%
CSAICloudastructure, Inc. Class A2.15-53.95-96.17%
WETOWebus International Limited0.74-128.26-99.43%

NetClass Technology Inc Class A Corporate Events

NetClass Technology Boosts Dragonsoft’s Control With New Class B Share Issuance

Sep 4, 2026

On September 2, 2026, NetClass Technology Inc entered into a securities purchase agreement with controlling shareholder Dragonsoft Holding Limited to issue and sell 300,000 Class B ordinary shares at $1.88 per share, the closing price of its Class A...

NetClass Technology Extends Maturity of $2.2 Million Convertible Note to November 2026

Aug 14, 2026

On August 13, 2026, NetClass Technology Inc. amended a previously issued $2.2 million convertible promissory note, originally dated August 4, 2025, with an accredited investor by extending the note’s maturity date to November 5, 2026. In return...

NetClass Technology CEO Tightens Control With August Class B Share Issuance

Aug 5, 2026

On August 1, 2026, NetClass Technology Inc. signed a securities purchase agreement with Dragonsoft Holding Limited, an entity wholly owned and controlled by Chief Executive Officer and chairman Jianbiao Dai. The deal set the purchase price at $2.69 p...

NetClass Technology Taps Share-Based Deals for Shanghai Advertising and AI Product Support

Jul 30, 2026

On July 20, 2026, NetClass Technology Inc entered into three year-long service agreements with unaffiliated providers, effective from July 21, 2026, to support its marketing and product development efforts. The company is paying for these services by...

NetClass Technology Files Interim Results and Details July Reverse Stock Split

Jul 22, 2026

NetClass Technology Inc. filed a Form 6-K for July 2026, furnishing unaudited interim condensed consolidated financial statements and related management discussion for the six months ended March 31, 2026. The filing, signed on July 21, 2026, also not...

NetClass Technology Regains Nasdaq Compliance After 50-for-1 Reverse Stock Split

Jul 22, 2026

On January 27, 2026, NetClass Technology Inc. disclosed it had fallen below Nasdaq’s $1.00 minimum closing bid price requirement for its Class A ordinary shares for 30 consecutive business days, triggering a 180-day grace period to restore comp...

NetClass Technology Enacts 1-for-50 Reverse Split to Safeguard Nasdaq Listing

Jul 7, 2026

On February 13, 2026, NetClass Technology shareholders approved a framework allowing one or more share consolidations over two years, with the board empowered to set ratios up to 1-for-2000 and adjust governing documents accordingly. Acting under thi...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Jul 30, 2026